Paul Hines, Courier-Times Staff Writer
A Honda supplier is one step away from bringing 300 jobs to Henry County when it ramps up production in March 2009.
The arrival of Japan-based TS Tech would be the biggest startup in Henry County business since Chrysler.
The Henry County Council unanimously approved a 10-year tax abatement on Wednesday for the Japan-based TS Tech. The company plans to supply automotive seating to the Honda Indiana plant in Greensburg.
"This was crucial today," Scott Hepner, TS Tech North America vice president of sales and purchasing, said after the county council meeting.
The company is still waiting for final approval from its headquarters in Japan to make the news official.
Hepner said after the meeting that it was "highly likely" that the headquarters would approve the decision. He told the county council he expected that approval to be final by the middle of next week.
Hepner said a 150,000 to 250,000 square-foot plant could be operational by August 2008. The company now has its focus on a 60.4-acre site in the southern part of the New Castle-Henry County Industrial Park. Hepner said the combination of incentives, location, highway system and available labor force all combined to attract TS Tech to Henry County.
At the council meeting, Hepner shared some background about the company. TS Tech was established in 1960. Honda is its primary customer. TS Tech has facilities in 11 countries and 14 in North America. Its first North American facility was established in 1977. TS Tech has approximately 5,300 employees now in North America.
Hepner said the addition of a Henry County plant would "push us toward the 6,000 mark."
The company plans to make a $32.8 million capital investment in Henry County, said Bryan Coats, president and CEO of New Castle-Henry County Economic Development Corp.
The tax abatement granted Wednesday would mean TS Tech would pay no property taxes its first year on the new building and equipment. In the second year, it would pay 10 percent. Each year, 10 percent would be added, until the 11th year the company would pay the entire tax bill.
Council member Dick Bouslog said he was impressed with the company's environmental record, and he welcomed the company to Henry County.
"We're pleased to have you with us," President Bob Veach said.
Councilman Nate LaMar asked the company's help in providing a teacher of the Japanese language in New Castle schools. LaMar, who works at Draper Inc., said it would be a great thing to have another international company doing business in Henry County.
New Castle Mayor Tom Nipp said after the meeting, "We worked very hard for many months with the Economic Development Corp. on this particular project.
"This is something our people need," he said. He added that it likely would be the beginning of more business growth in the future.
"It's going to benefit so many people," Nipp said. "It's going to help people that are desperate to pay their bills and take care of their families.
At 300 employees, TS Tech would be the biggest business startup in Henry County since Chrysler's predecessor Maxwell-Briscoe, which began in 1907 with 1,200 skilled employees. Grede Foundries Inc. began in 1989 with 140 employees. Draper Inc. now employs 515, but its growth has been a long road to success. Draper began with 25 employees in 1941.
By 2010, the average wage paid by TS Tech would be $15.04 per hour, according to Coats.